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Data Enrichment Basics: What It Is and Why It Matters
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Data Enrichment Basics: What It Is and Why It Matters

Welcome to the untapped potential of data enrichment—a game-changer that goes beyond mere data collection.
Author
Primer team
Updated on
January 23, 2024
Published on
September 7, 2023

Table of Contents

Chances are, you believe your B2B marketing data is already doing its job. You've got metrics, KPIs, and enough spreadsheets to make anyone's head spin. But what if we told you that's just scratching the surface? 

Welcome to the untapped potential of data enrichment—a game-changer that goes beyond mere data collection to offer actionable insights you didn't even know you were missing.

We'll demystify data enrichment and why it's the missing puzzle piece in your marketing strategy. We'll dive into the transformative power of firmographic data, explore how to stay compliant with data regulations, and reveal how enriched data can supercharge your personalized marketing efforts. And none of this matters if you can’t measure the ROI of enrichment efforts, so we’ll explore the best ways to approach that as well. 

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Data enrichment is the process of enhancing existing customer and prospect data by appending additional third-party data attributes to create more complete profiles. This provides companies with a 360-degree view of their target audiences that they can leverage to improve marketing and sales initiatives.

At its core, data enrichment is about taking internal customer data from sources like CRM systems and enriching it with external data on customer demographics, company details (firmographics), technology usage (technographics), and more. This external data is sourced from reputable third-party providers and gives context beyond what is captured internally.

For example, a company may have basic contact and account information on a prospect from marketing automation. By enriching this data with firmographic attributes provided by a third-party data vendor, they can now see deeper insights like the prospect's company size, industry, tech stack, and intent signals.

Data enrichment has proven useful for most marketers. According to Forbes, 95% agreed that this strategy improved alignment between marketing and sales teams. Complete profiles enable both teams to better identify, understand, and engage their ideal customer profiles.

With enriched customer data, sales teams can qualify prospects faster by knowing details like company revenue and growth. Marketers can hyper-target campaigns leveraging enriched attributes like job titles, technologies used, and buyer intent.

Data enrichment also powers account-based marketing initiatives. Detailed firmographic data helps businesses identify high-value target accounts. Enriched profiles ensure messaging resonates with each account's industry, business models, and challenges.

The benefits of data enrichment are clear. Forbes found that businesses see an average 14.5% increase in sales pipeline from enriched data. Meanwhile, a Demandbase study found that B2B accounts with enriched firmographic data see a 12% increase in conversion rates.

In today's competitive B2B landscape, data enrichment provides the customer intelligence needed to stand out. Complete profiles lead to precise targeting, relevant messaging, and higher conversion rates.

The Power of Firmographic Data

Firmographic data refers to details about a company’s characteristics, including industry, number of employees, revenue, technology stack, and more. Enriching contact data with targeted firmographic attributes can provide a 360-degree view of accounts and unlock new opportunities for precision outreach.

According to a study by Demandbase, accounts that had enriched firmographic data saw a 12% increase in conversion rates compared to those without. Clearly, firmographic enrichment can have a significant impact on marketing and sales performance.

One of the most valuable firmographic data points is company size based on number of employees. Knowing the size of an account makes it possible to segment prospects appropriately and personalize engagement. For example, enterprise accounts with over 1,000 employees require a different marketing and sales strategy compared to SMBs with less than 100 employees.

Understanding a prospect’s industry vertical is another important attribute. Industry data enables targeting ideal customer profiles and personalizing content around industry-specific pain points. For example, tech stack intelligence allows marketers to identify which technologies an account uses and target them with relevant product messaging.

Enriched revenue data delivers visibility into the budget an account has to spend. High-value accounts can be nurtured via sales, while smaller accounts may be better served through automation. According to SiriusDecisions, aligned threshold settings based on revenue data can improve marketing and sales productivity by up to 25%.

In addition to conversion and productivity gains, firmographic data enrichment drives significant cost savings. By qualifying out accounts that don’t meet the ideal customer profile based on attributes like size and revenue, marketers can minimize wasted spend. Focusing on qualified, high-fit accounts also boosts marketing ROI.

When leveraged effectively, firmographic enrichment enables B2B marketers to segment and engage accounts in a targeted manner across channels. The data-driven approach paves the way for meaningful interactions with prospects and customers.

Complying with Data Regulations

As data enrichment relies heavily on third-party data, it's crucial for B2B marketers to comply with data privacy regulations. Violating these regulations through improper data collection or usage can result in major fines and reputational damage.

Marketers should know two key regulations: the EU's General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) in the US. While the specifics differ, both focus on transparency around data collection and use, requiring consent from consumers to process their personal data.

When procuring third-party data for enrichment, vet potential suppliers thoroughly. Confirm they collect data legally and responsibly. Review their consent collection process. For example, do they provide clear notice and choice to consumers regarding the use of their data?

You must also secure active consent from your customers and prospects before incorporating enriched third-party data into your database. Consent must be freely given, specific, informed, and unambiguous. Make it easy for contacts to opt out at any time.

Under GDPR, companies must enable data subjects to access, correct, restrict the use of, or delete their personal data. Build mechanisms to fulfill such requests efficiently. CCPA has similar requirements for California residents. Stay current on any changes to privacy laws and adjust strategies accordingly.

Maintaining an audit trail is also key. Document when and how consent was acquired. Keep records of your data sources, transfers, and usage. This supports compliance and helps demonstrate accountability.

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Lastly, take steps to minimize data security risks. Anonymize data where possible. Encrypt data in transit and at rest. Control access with role-based permissions. Having safeguards against misuse or breaches is important under privacy regulations.

By making data ethics a priority, B2B organizations can uphold compliance standards while tapping into the benefits of data enrichment. Review policies and procedures regularly to ensure they align with legal obligations around third-party data usage and consumer privacy. With the right foundations, data enrichment can strengthen marketing and sales initiatives without legal or reputational liabilities.

Use Enriched Data to Personalize Marketing

With comprehensive firmographic, technographic, and intent data appended to your database, you gain the insights needed to segment and target prospects in a personalized way. This enables you to tailor messaging, offers, and experiences to each prospect's needs and interests. The result is more relevant outreach and higher engagement.

For example, instead of sending a generic email blast, use firmographic data like company size and industry to divide your list into segments. Send each group content that speaks directly to their challenges and goals. Small retailers likely have different concerns than large manufacturers. You can also localize messaging using location data to improve relevance.

Enriched technographic profiles allow personalization based on the technologies prospects use. Send content about solutions that integrate with the specific apps and software in their tech stack. For prospects researching new tools, use intent data to see the categories they're investigating. Craft messaging around how your product can meet the needs they're exploring.

Likewise, use intent signals to identify where prospects are in the buyer's journey. Send educational content to those in the early research stage and product demos to bottom-of-the-funnel leads. Match message tone to their stage - promotional for awareness building versus consultative for evaluation.

To maximize impact, build personalized experiences across channels. Send emails with targeted subject lines and dynamic content. Show tailored ads to prospects browsing your site based on their firmographic profile. Recommend specific content when they return based on past behavior.

The more relevance you can create, the higher engagement and conversion you'll achieve. According to a study by Evergage, personalization lifts conversion rates by 15% and revenue by 10%. It also enhances customer loyalty and retention over time. Continually refine your segmentation and targeting as you enrich data with more attributes. Test new personalization strategies and measure the uplift to maximize ROI.

Measuring the ROI of Data Enrichment

Implementing a data enrichment strategy takes time and resources, so it's crucial to measure its return on investment. By tracking key metrics before and after enrichment, you can quantify the impact on your B2B marketing and sales processes. According to research by Aberdeen Group, best-in-class companies see over 10% year-over-year increases in conversions as a result of data enrichment efforts.

Start by identifying relevant metrics to track based on your goals. For lead generation, look at changes in form conversion rates, cost per lead (CPL), and sales accepted lead rate after enrichment. To gauge opportunity impact, analyze the deal size, sales cycle length, and win rates. Revenue metrics like pipeline velocity and growth by channel are key as well.

Set up tracking to monitor these KPIs over time. Use historical performance as a baseline to compare against post-enrichment. For example, if your average CPL was $50 prior to enrichment, assess if it decreases to $45 after appending firmographic data. Look for statistically significant improvements across key metrics to confirm the value of enrichment.

Beyond standard metrics, also track enrichment program-specific ROI. Calculate the number of net new leads that surfaced through third-party data. Compare program costs like data procurement and staff time to the incremental pipeline and revenue generated. This shows the monetary return from investment in enrichment.

Regularly refresh your enriched data to sustain improvements. Monitor metrics during each update to ensure your model remains effective. If you see declines, it may signal issues like data decay or the need to append additional attributes.

Report on metrics and ROI across stakeholders. Share dashboards with marketing, sales, and execs. Tie enrichment KPIs back to broader goals around pipeline and revenue to showcase its strategic impact.

With the right measurement strategy, you can clearly demonstrate the value of data enrichment in concrete business terms. Quantifying the lift in conversions, deal size, and velocity builds an ironclad case for investing in this high-impact B2B marketing practice. Enrichment pays dividends when implemented effectively, so be sure to track your program ROI closely.

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